Afonso, Gara; Kim, Kyungmin; Martin, Antoine; Nosal, Ed; … - 2023
We offer a parsimonious model of the reserve demand to study the tradeoffs associated with various monetary policy … implementation frameworks. Prior to the 2007-09 financial crisis, many central banks supplied scarce reserves to execute their … interest-rate policies. In response to the crisis, central banks undertook quantitative-easing policies that greatly expanded …